From: Jack Fenchel [jlfenchel@zoominternet.net]
Sent: Tuesday, November 11, 2003 2:41 PM
To: rule-comments@sec.gov
Subject: S7-23-03:
Change for short sales is long overdue by the SEC.
Japan, FSA Short Selling
Japanese securities exchange authorities are tightening their supervision
of short selling, postulating that the practice may be distorting the stock
market, which has been falling almost continuously for 12 years.
Late last month, tighter regulations on short-selling were introduced as
part of efforts to prop up the sagging stock market.
Under the new rules, the FSA is requiring securities firms to charge fees
for all loaned shares. It also is requiring investors to give advance notice
when they borrow at least 300,000 shares, making it harder for them to take
large short-selling positions.
Charge for short sales
Japan Securities Finance Co. will charge brokerages when they borrow
shares for short sales.
The move, announced Tuesday, comes in response to a request by the Financial
Services Agency to tighten regulations on short selling.
The loan fee will be set at 0.4 percent and will be charged on contracts
starting May 7.
Meanwhile, the Tokyo Stock Exchange said it will revise part of its
regulations on margin and loan transactions, asking brokerage firms to set
appropriate fees when they lend stocks to customers.
The revision, aimed at improving the use of margin-trading, will also be
implemented May 7, the bourse said.
By the looks of it Japan market was helped by their new rule changes.
___________________________
Federal securities laws have been on the books in the United States since
the early 1930s, when Congress enacted legislation to protect investors from
the type of fraud that accompanied the great stock market crash of 1929. These
laws are intended to protect shareholders from losses suffered as a result of
fraud on the part of public companies, their officers and directors, underwriters,
auditors, and accountants. Securities class actions can involve many different
types of fraud or misconduct, from corporate misstatements regarding a company's
revenues, profits, or financial status, to improper accounting manipulations
that serve to artificially inflate the price of a company's stock. When the
fraud is uncovered, the stock price often plummets, causing investors to lose
money. The Federal securities laws provide a means for investors to recover
some or all of their losses when the losses are due to fraud.For the investor
whose portfolio has suffered due to the malfeasance of corporate management,
the expense of a protracted lawsuit involving hundreds of hours of legal time
and an uncertain outcome is not a viable option.
__________________________
The highspeed computers has devastated the 1930 Federal laws.
PC short selling has sent the market into a tailspin and has emptyed long
investors accounts.
Short selling has sent fraud into overdrive.
Don't blame management because their Company got robbed by Las Vegas,
short selling.
My opinion, Ban! all Short Selling. Or put a 1% cap on the float.
No! Short Selling of all new IPO's for 1 or 2 years.
With a cap the SEC would only have to enact part of the new short selling
rule changes.
The US, Economy and Market would surge up! with all the new rule changes
and if a cap
is put on Short Selling?
God Bless America!
______________________________
No! Short Position decrease in sight ...................Increase running
ramped.........>>
Ticker Company Name Position Increase from past month.
CSCO> Cisco Systems Inc. - Common Stock 22,273,984
MSFT> Microsoft Corporation - Common Stock 15,196,463
INTC> Intel Corporation - Common Stock 12,764,673
CORV> Corvis Corporation - Common Stock 11,708,758
ORCL> Oracle Corporation - Common Stock 11,243,796
ICGE> Internet Capital Group Inc. - Common Stock 11,194,464
YHOO> Yahoo! Inc. - Common Stock 8,654,239
QCOM> QUALCOMM Incorporated - Common Stock 7,758,727
SUNW> Sun Microsystems Inc. - Common Stock 6,188,323
NXTL> Nextel Communications Inc. - Class A Common Stock 5,377,471
SBUX> Starbucks Corporation - Common Stock 2,920,136
Jack Fenchel